Beijing—Manila Ties Enter Bright New Era

Exclusive Interview with Chinese Ambassador to the Philippines

Zhao Jianhua

An old Chinese saying goes that “while styles of writing vary， the flow of water changes.” Such a phrase could also be used to describe the ever-changing global political landscape， particularly when applied to recent improvements in relations between China and the Philippines.

After China and the Philippines first established diplomatic relations in 1975， bilateral ties developed smoothly in a wide range of fields for several decades. Such positive relations continued until several years ago， when instigated by the United States and a number of other Western countries， the administration of former Philippine President Benigno S. Aquino III unilaterally initiated South China Sea arbitration against China. This did great harm to bilateral relations， had a significant impact on the domestic development of the Philippines and threatened regional peace and stability.

After President Rodrigo Duterte took office in June 2016， he decided to abandon his predecessor’s policies on the South China Sea and shifted focus to rebuilding friendship with China. He made his first state visit to China in October 2016， and just six months later， he revisited Beijing. Foreign Secretary Alan Peter Cayetano of the Philippines recently stressed， “President Rodrigo Duterte's attendance at the Belt and Road Forum for International Cooperation this May in Beijing shows the Philippines’ sincere support for the Belt and Road Initiative and regional connectivity. From our perspective， the Belt and Road is a great vision which has the potential to benefit the world.” Chinese Foreign Minister Wang Yi noted that relations between China and the Philippines have entered a “golden period of rapid development”.

Facing China from across the sea and located along the ancient Maritime Silk Road， the Philippines， a hub connecting East and West， is an important partner in China’s construction of the 21st Century Maritime Silk Road. What should the two countries do to consolidate their hard-won positive diplomatic relations following a difficult period of several years？ On June 28， joining a media delegation organized by the ASEAN-China Center， China Report ASEAN visited Manila for an interview with Zhao Jianhua， Chinese Ambassador to the Philippines.

>>China Report ASEAN： Relations between China and the Philippines have achieved major improvements over the past year. Additionally， China became the largest trade partner of the Philippines for the first time. President Duterte has pointed out that the Belt and Road Initiative has helped neighboring countries develop their economies and expand markets. What do you think of the rapid development of bilateral relations？

Zhao Jianhua： This year， the Philippines is the rotating chair of ASEAN， which remains a priority of China’s neighboring diplomacy. The strategic partnership between China and ASEAN has evolved from a \"golden decade\" to a “diamond decade”， which both sides hope will feature deepened political trust， expanded economic cooperation and closer cultural exchanges.

During his successful state visit to China last October， President Duterte agreed with Chinese President Xi Jinping to put bilateral ties back on track. Thanks to the joint efforts of both countries， significant improvements have been achieved in bilateral relations， with mutual trust continuously deepened， mechanism exchange fully resumed and cooperation rapidly expanded in all major fields. As more and more Chinese firms become enthusiastic about investing in the Philippines， an increasing number of Chinese tourists have been attracted to the Philippines and China’s imports of Philippine products such as tropical fruit have soared exponentially. These changes point to the fact that Beijing-Manila ties are progressing on the right track， meeting the common interests and expectations of both peoples.

Situated in a strategic location linking the Pacific and Indian Oceans， the Philippines has the potential to be a key player in the joint construction of the 21 Century Maritime Silk Road. It shares many common views with China in terms of development strategies. Infrastructure connectivity， for example， a priority for implementing the Belt and Road Initiative， is also a policy pillar and primary focus of “Dutertenomics，” a series of development strategies recently proposed by the Philippine government.

This May， Duterte led a delegation of nearly 200 politicians and diplomats， including 17 ministers， to the Belt and Road Forum held in Beijing， where he once again met with Chinese leaders， demonstrating their great support and earnest expectations for the Belt and Road Initiative. Currently， the two countries are joining hands to speed up the construction of railways， bridges， irrigation works and other infrastructure projects， as well as industrial parks， in the Philippines.

In the future， China will continue cooperation and exchange with the Philippines to promote policy coordination， facilities connectivity， unimpeded trade， financial integration and people-to-people bonds. I’m strongly convinced that Belt and Road construction will bring prosperity to both countries， as well as the region as a whole.

>>China Report ASEAN： Along with improved bilateral relations， people-to-people exchanges have increased. Which are the industries that have seen new opportunities of development？ Has tourism benefited？

Zhao Jianhua： The improved bilateral relations have injected new momentum to exchange and cooperation in various fields. During Duterte’s 2016 China visit， the two governments agreed to carry out cooperation in trade， investment， finance， infrastructure construction， agriculture， science and technology， press and media， culture， tourism and sister-city partnerships， with 13 Memorandums of Understanding signed. These agreements will certainly propel bilateral exchange and mutually beneficial cooperation across a wide range of industries.

When it comes to tourism， the past year saw a hike in two-way visits of tourists between the two countries. In 2016， Chinese tourist visits to the Philippines exceeded 675，000， an increase of 37 percent year-on-year， making China the third largest source of tourists to the Philippines. As the Chinese and Philippine governments encourage their citizens to visit each other’s countries， an increasing number of airlines have opened routes between major cities in both countries. The year 2017 marks the China-ASEAN Year of Tourism Cooperation， and about 1 million Chinese tourists are expected to visit the Philippines.

Next， the two governments will work together to further facilitate tourism， promote their respective tourism resources， increase tourism investment， improve tourist emergency response mechanisms， construct more tourism cooperation platforms and transfer the consensus reached by state leaders into practical achievements， so as to take bilateral tourism cooperation to new heights.

>>China Report ASEAN： The Chinese government has taken measures to boost mass entrepreneurship and innovation， supporting the development of small and micro enterprises and optimizing the business environment. Are there any similar policies or measures in the Philippines？

Zhao Jianhua： In recent years， the Philippines has maintained a strong momentum of development， and has become one of the fastest-growing economies in Asia-Pacific， witnessing a 7 percent annual growth rate.

After the Duterte administration took office， it has successively released a 10-point socioeconomic agenda as well as “Dutertenomics\" policies. Primary economic strategies of the new administration include amending laws to attract foreign investment， improving the country’s business environment， boosting infrastructure construction， carrying out tax reforms， supporting the development of small and medium-sized enterprises， encouraging talent cultivation and technological innovation， streamlining administrative procedures and improving public services， with an aim to forge a more balanced， inclusive and sustainable economic development model. These measures share common ground with China’s reform policies and the two countries’ potential to expand economic cooperation is clear.

>>China Report ASEAN： Historically， Chinese tea and porcelain were traded along the Maritime Silk Road， while in modern times， fruit from the Philippines enjoys great popularity in the Chinese market. What Chinese products are Philippine consumers interested in？ Are Chinese brands well received？

Zhao Jianhua： In the past， merchants aboard Manila Galleons brought Chinese silk， porcelain， tea and handicrafts through the waters around the Philippines to the Americas， Europe and the rest of the world. Today， China is the largest source of imports for the Philippines.

Philippine consumers’ traditional recognition of Chinese products came from Chinese small commodities and articles for daily use， which satisfied their everyday needs with abundant variety and affordable prices. Chinese porcelain， tea and silk still remain popular among Philippine consumers， with untold market potential. As China strives to transform itself from a manufacturing giant into a world manufacturing power， a number of Chinese home products manufacturers， including Huawei， Xiaomi， Oppo， Lenovo， Haier， Gree， Geely and BYD， have tapped into the Philippine market， and their quality products and strong reputations have given them increased market shares.

Apart from traditional consumer goods， top Chinese IT brands such as Alibaba and Tencent have also gained strong following in the Philippines. I have confidence that with further implementation of the “Made in China 2025” strategy and the Belt and Road Initiative， even more Chinese high-end products， equipment and technologies will do well in the Philippine market.